Author Topic: Question about how buybacks work  (Read 626 times)

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Offline merockstar

Question about how buybacks work
« on: November 15, 2015, 04:49:17 pm »
In schemes like Obits, METAFEES, and LottoShares, what would determine the price at which shares are bought back if the market is empty and everybody is hodling?

Would the person buying back the tokens just arbitrarily pick a higher price than they sold them for, and keep increasing it until somebody buys?

Offline xeroc

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Re: Question about how buybacks work
« Reply #1 on: November 15, 2015, 05:35:44 pm »
If no one is selling .. no buyback can be performed ..
If people are selling .. the funds that are considered for the buyback are used to buy back as many as possible .

if you were the only one selling .. you could ask for an arbitrary price ..
Then OL/metaexchange etc will use all the buyback funds to buy all the tokens you sell at any price ..
that will only happen if you hold ALL tokens .. then you can of course get ALL funds from buy back
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Offline merockstar

Re: Question about how buybacks work
« Reply #2 on: November 15, 2015, 05:39:15 pm »
gotcha.

so if someday I see monsterer posting, "hey guys! I'm trying to buy back metafees but no sell orders. somebody set a sell order!" then I should run to the DEX and set a high price for some of my METAFEES.